Trading Statement

Hostelworld provides an update on trading up to 30 June 2026 ("H1 2026").

Key highlights:

• Revenue Acceleration versus prior year: Net revenue1 of €52.2m (+12% YoY), with revenue per transaction1 of €14.9 (+11% YoY). Net transactions2 of 3.8m (+1% YoY), we estimate that in the first half of the year, volumes were negatively impacted by approximately 3%, as a result of the conflict in the Middle East, with Asia and Oceania most materially affected.
• Marketplace Monetisation: Effective commission rate increased to 17.7% in H1 2026 (H1 2025: 15.8%; H2 2025: 16.7%), demonstrating the sustained trajectory of our marketplace monetisation tool, Elevate.
• Improved Marketing Efficiency: Direct marketing costs as a percentage of revenue3 totalled 49% in H1 2026, down from 51% in H1 2025, supporting a net margin growth of 16%, to €22.9m.
• Strong EBITDA Returns: H1 2026 adjusted EBITDA of €8.2m (H1 2025: €7.4m), an 11% increase YoY, with an adjusted EBITDA margin of 16% (flat YoY).
• Robust Balance Sheet: Closing cash position of €15.0m and net cash of €2.5m.
• Inventory Expansion: since the launch of budget accommodation in December 2025, the offering continues to expand across iOS, Android and mobile web, in multiple languages, via a third-party inventory supplier.
• Social Network: OccasionGenius integration on track, with event discovery due to go-live in Q3 2026, across the Hostelworld platform.
• There is no change in our guidance for the full year.

Gary Morrison, Group Chief Executive Officer, commented:

"Hostelworld delivered strong revenue growth in the first half of 2026, with net revenue up 12% year-on-year to €52.2m. This was led, in part, by Elevate, our marketplace monetisation tool, which lifted our effective commission rate to 17.7%, up from 15.8% a year earlier and from 16.7% in the second half of 2025; Elevate continues to give our hostel partners greater flexibility to reflect the value they place on our high-intent, predominantly international customer base. Direct marketing as a percentage of revenue was 49%, compared with 51% in H1 2025. Together these drove adjusted EBITDA to €8.2m, up 11%.

Transaction volumes rose 1% year-on-year. The impact of the conflict in the Middle East, which we flagged at our full-year results, intensified through the second quarter and, across the first half, we estimate it reduced volume growth by approximately three percentage points, concentrated in longer-haul demand to Asia and Oceania. Demand in Europe and North America was more resilient.

We continued to make good progress against our strategic roadmap during the first half of 2026. Our third-party budget accommodation offering is expanding across platforms and languages, event discovery is due to go-live in Q3 across the platform, following our acquisition of OccasionGenius, and Social Passes are broadening our addressable market. We look forward to setting out this progress, and our strategic and operational priorities for the platform, in more detail at our half-year results on 29 July.

The Group maintains a robust balance sheet and net cash position. Our full-year guidance assumes that the disruption associated with the Middle East conflict eases through the second half and broader trading conditions normalise, with the contribution from our growth initiatives increasing as the year progresses. The Group continues to monitor the ongoing geopolitical environment but on the basis of the above, we reiterate our guidance for the full year."

The Group will report its half-year results for the six months ended 30 June 2026 on 29 July 2026.

• Net Transactions includes bookings paid via directly contracted inventory, 3rd party contracted inventory and Social Pass purchases.
• Generated revenue is gross revenue less cancellations and excludes impact of deferred revenue.